Botox maker Allergan (NYSE:AGN) saw shares puff up in pre-market deals after it revealed a new US$2bn share buyback programme.
It also reassured investors by saying it will pay down its US$3.75bn (£2.78bn) debt pile next year and reasserted it commitment to increasing its regular quarterly dividend payment.
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"We continue to believe that Allergan stock is substantially undervalued, and the share price today presents a unique investment opportunity for the company," said Brent Saunders, chairman and chief executive in a statement.
"Today's actions by the board follow our recently completed repurchase of US$15 billion of Allergan common stock and strikes the right balance in our desire to return capital to our shareholders while maintaining our focus on investment-grade credit ratings.
Finance chief to step down
In a separate statement, also today, the drugs giant said Tessa Hilado, its finance chief, would retire.
The company has started the search to fill the position, and Hilado, who joined in 2014, will remain in the role until a successor is named.
"When I joined Allergan in December 2014, I promised Brent Saunders, Chairman and CEO, that I would stay three years to help transform the finance organization, institute better systems and financial controls and improve the balance sheet," said Hilado.
Shares puffed up 3.40% to US$211.61.